What is a Bond Coupon?
DeFine Glossary #7
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Defined: Bond Coupon
Coupons refer to any interest earned as money from a Bond.
If you've loaned money to a company, they usually fix an interest rate & pay it back to you annually.
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Example: Give Rs 100 to Company X for 1 year at 5% interest rate.
Bond's face value=Rs 100.
Coupon=Rs 5.
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Simply Put,
Coupon refers to the interest you earn on a bond as a percentage of the bond's face value
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